TWIG-C™ – May 4, 2026

May 4, 2026 | TWIG-C™

GOVCON INSIGHTS AND INFORMATION:

GAO flags hundreds of classified contractor security violations – The Defense Counterintelligence and Security Agency documented hundreds of data spills, improper storage incidents and other security violations by cleared defense contractors last year, according to the Government Accountability Office. In a new report, GAO reviewed DCSA’s efforts to ensure defense contractors are protecting classified information. The report comes as foreign entities attempt to steal classified data from industry “thousands of times per year,” GAO states. DCSA conducted more than 4,600 security reviews in fiscal 2025 and documented 815 security violations, according to GAO.

FAR Overhaul Eliminates Veteran-Owned Subcontractor Self-Certification – In a change that has flown under the radar of some government contractors, the Revolutionary FAR Overhaul has eliminated the ability of veteran-owned small businesses to self-certify their status for purposes of meeting a prime contractor’s VOSB subcontracting goals.

DOL $596K Recovery, 3-Year Debarment Highlights Davis-Bacon Compliance Risks for Construction Contractors – An investigation by the Department of Labor Wage and Hour Division (DOL WHD) recently found that J. Solano HVAC LLC (the Company), a subcontractor on two Washington, D.C. affordable housing projects, willfully violated the DBA (Davis-Bacon Act) multiple times when it: (1) failed to pay workers the prevailing wage and (2) misclassified skilled sheet metal workers and pipefitter mechanics as lower-skilled laborers, thereby underpaying required wages and fringe benefits. DOL action shows that willful violations of the DBA risk more than wage penalties for government contractors.

Protesting an Award? What the Latest CICA Stay Decision Means for Government Contractors – The U.S. Court of Appeals for the Federal Circuit (Federal Circuit) recently rejected the argument that a plaintiff challenging an agency’s override of an automatic stay of a contract—commonly referred to as the Competition in Contracting Act (CICA) stay—should be required to succeed under the four-factor test for preliminary injunctions. Life Science Logistics, LLC v. United States.¹ The Federal Circuit panel agreed with the U.S. Court of Federal Claims (COFC) decision—that a bid protester seeking to challenge an agency’s override of a CICA stay need only show that the agency’s override decision was arbitrary and capricious. Federal Circuit’s decision is positive news for government contractors who want to enforce a CICA stay and protect their position when protesting an award.

President’s Executive Order Requires Terms Addressing DEI in Contracts – Recently, President Trump issued an executive order focused on federal contractors and DEI (meaning “Diversity Equity and Inclusion”) initiatives. Through this executive order, the President has quickly placed new requirements on federal contractors and agencies to include specific terms within their contracts and subcontracts. These terms add up to a somewhat lengthy contract clause, with the basic requirement that parties agree to not utilize DEI practices and agree to comply with any investigations of such practices by an agency. The executive order also provides some stark consequences for any failure to comply with its aims. Let’s dive in. On March 26, 2026, President Trump issued an executive order titled “Addressing DEI Discrimination by Federal Contractors.” According to the executive order, “some entities continue to engage in DEI activities and often attempt to conceal their efforts to do so” and “DEI activities are not only unethical and often illegal, but also cause inefficiencies, waste, and abuse within entities that engage in such practices.” Therefore this executive order was issued to “promote economy and efficiency in Federal contracting by preventing racial discrimination.”

A Reversal in Course? SBA Rescinds Several 8(a) Suspension Notices – As you may recall, this past December, SBA launched a massive audit of the 8(a) Program, in which 8(a) participants were required to submit a long list of financial documents for review. Many feared it was the beginning of the end of the 8(a) Program when several 8(a) Participants were hit with suspension notifications earlier this year. Most of these suspensions were a result of SBA’s review of the documents collected during the December data call. The basis was often a claimed failure of these participants to submit all the data asked for. However, as provided for in 13 C.F.R. § 124.305(c), these participants had the opportunity to appeal these suspensions, and many of them took that opportunity. In several cases, it turns out that SBA itself decided that its suspension was unnecessary, and rescinded those actions. Today, we’ll look at this development.

GSA Sharpens Focus on Small Business with New Office Designation – Moving forward, GSA’s Office of Small and Disadvantaged Business Utilization will operate under the name Office of Small Business (OSB) — a designation that better reflects our shift toward a more holistic, consultative approach to our support for America’s small businesses. The office’s statutory authorities under the Small Business Act remain unchanged. The new secondary title clarifies our team’s role in ensuring compliance with federal small business requirements, providing consultative support to acquisition professionals and industry, and ensuring capable small businesses can compete, provide high-quality solutions, and help the government operate more effectively.

America’s seed fund’ is being revamped for modern warfare – The U.S. government is modernizing its Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) programs to get after contemporary warfare and national security gaps, senior officials involved in the work said on Wednesday. Referred to collectively as “America’s seed fund,” that decades-old pair of federal programs provides technology-focused small businesses and startups with early-stage investments and support to commercialize their products, and ultimately field them for use by federal agencies and the military.

Trump orders big change to federal contracting structures – The White House wants to revamp federal contracting practices by making cost-reimbursement structures the exception, not the rule, per an executive order signed Thursday. President Donald Trump’s order calls on the federal government to view fixed-price contracts with performance-based considerations as “the default and preferred method of procurement.” Shifting to fixed-price deals would “advance cost predictability and budget discipline” while locking in more “appropriate contractor incentives and accountability,” the directive stated.

The preference for fixed-price contracts receives accountability boost – The push for outcome based contracting by the Trump administration received another boost. President Donald Trump’s latest acquisition-focused executive order, released yesterday, is mandating the use of firm fixed price contracts, with limited exceptions, or a justification by agency leaders as to why other contract types, like labor hours or cost reimbursement, are necessary.

FAS 2.0 becomes ASD/Create: GSA’s quiet rewiring of federal procurement power – By any outward measure, the General Services Administration’s Federal Acquisition Service has long been the government’s workhorse — running schedules, managing contracts and keeping the machinery of procurement moving. But the newly announced “FAS 2.0” reorganization, apparently to be rolled out the week of May 4, signals something more ambitious: A deliberate shift from contract administration to centralized, portfolio-level control over how the federal government buys technology. This is not a reshuffle. It is a redefinition of mission.

The costs of contract duplication – As the federal acquisition community implements the Revolutionary Federal Acquisition Regulation (FAR) Overhaul (RFO) and consolidates procurement operations, the challenge of contract duplication remains. Unnecessary contract duplication increases bid and proposal, contract administration and management costs for government and industry. Contract duplication is a stealth tax on the procurement system, impacting customer agencies and contractors alike. It reduces efficiency, leads to higher prices, and reduces access to the federal market. Contract duplication creates barriers to entry for all firms, whether they are new entrants, current contractors, small businesses or large businesses.

FAR/DFARS UPDATES:

On April 20, 2026, the Federal Acquisition Regulatory Council released updates to the Federal Acquisition Regulation (FAR) model deviations to implement Executive Order (E.O.) 14398, Addressing DEI Discrimination by Federal Contractors, dated March 26, 2026.
In accordance with issued FAR Council guidance, the following update to Practitioner Album Part 22 was posted on April 27, 2026, with FAQs to provide implementation support to practitioners.

RFO Part 22 – Application of Labor Laws to Government Acquisitions:
- Practitioner Album: FAR Part 22 FAQs added.

Acquisition of Items for Which Federal Prison Industries Has a Significant Market Share – DoD is publishing the updated annual list of product categories for which the Federal Prison Industries’ share of the DoD market is greater than five percent.

OPPORTUNITIES:

MDA RFI: Missile Defense System-Next.
Army RFI: NGC2 Software Application Storefront, Pipeline and Tailorable Warfighting Applications.
USSOCOM RFI: ANCHOR Initiative.
IRS RFI: Service-wide Online Survey, Digital Website Feedback Platform.
USAF RFI: Aerospace Systems Technical Research & Operations Support Services II (ASTROS II).
DISA RFI: Virtualization Enterprise Software Solutions.
DOS RFI: Centralized Evaluation System Platform.
NASA RFI: Mission Integration Prime for GeoXO Series Satellites.
DHA RFI: GEIS Network Illumina Sequencing Platform Modernization.
USAF RFI: ASTROS II.
NASA RFI: SLS Cubesat Opportunities on Artemis III, IV, and V Missions.
Coast Guard Cyber Command Plans $100M Operations Support Contract
DIA Issues Presolicitation, Draft RFP for Potential $800M DORE3 Contract